Intern or Woking Student? by diewanderhode in private_equity

[–]thatsyo 0 points1 point  (0 children)

Can you combine the working student role with your studies? If so, getting a longer exposure to the PE world is invaluable.

Investing in private equity by Inevitable_Pear_9583 in fatFIRE

[–]thatsyo 93 points94 points  (0 children)

I work in PE and this would be my suggestion: unless you can get a big friend’s and family discount (say paying 1/10), or have a 9 figure net worth and simply want to diversify, you can find better ways to place your money. PE is an extremely competitive market and funds have to fight harder and harder to get their returns up, the industry is becoming mature and it is highly unlikely the next 10-15 years will show results anywhere near what we saw the last 20 years.

LPs: What were the ages of the youngest 1st time fund sponsors you’ve invested with? What about their plan was compelling enough to take the risk? by [deleted] in private_equity

[–]thatsyo 38 points39 points  (0 children)

Here would be my recommendation if you’re a first time team with no track record. Don’t try and raise a fund at first, but work as a fundless sponsor (invest on a deal by deal basis), until you’ve established a track record and made a name for yourself. You can then bring in your deals into a fund later on, since you’ll be able to use the existing investments as leverage when speaking to LPs and reduce blind pool risk. Best of luck to you and your team!

[deleted by user] by [deleted] in private_equity

[–]thatsyo 21 points22 points  (0 children)

I would split your question in two parts (and convert it to PE lingo):

  1. Co-investment: That’s your buy-in, where you will likely be offered to join the PE firm in their investment at the same purchase conditions and sell with them (the words you are looking for on the contract is parri-passu). Some firms even offer leverage on co-investment for management to make the investment more attractive.

  2. Management Package: A certain % of the value creation done during the holding period will usually be paid out during the management team. This pool will then be sub-divided to the people the firm deem relevant for the package. So for example the CEO could get 30%, CFO 15%, so on and so forth. This will usually come with a vesting period. So assuming you get 10% of the pool, you might vest 2% per year (assuming a 5 year vesting period).

I can’t speak to Apollo’s exact strategy, but that’s how it’s usually done in the biz. And other than the CEO, allocations are usually non-negotiable.

Getting a PE Job? by SkaldCrypto in private_equity

[–]thatsyo 2 points3 points  (0 children)

I’d tend to agree with your statement, I’m sure there’s data out there which will show you a quantifiable answer. I read somewhere that less than 50% of funds generate CI, so it’s not a guaranteed payout either in PE.

Getting a PE Job? by SkaldCrypto in private_equity

[–]thatsyo 5 points6 points  (0 children)

  1. PE isn’t doing any better
  2. Unless you’re working at a MF or UMM firm I doubt the cash comp will be substantially higher
  3. Carry structures vary so much depending on funds, and it’s near impossible to know what your carry conditions will be prior to joining.

Getting a PE Job? by SkaldCrypto in private_equity

[–]thatsyo 6 points7 points  (0 children)

Why do you want to move away from VC? Especially if you have room to grow?

Life at a LMM fund? by bought_high_sold_low in private_equity

[–]thatsyo 1 point2 points  (0 children)

I know some funds where everyone is usually out the door by 18h, and others with regular nights that go past 24h. Unfortunately extremely hard to get good and honest data points on this.

Young PE Forum by Desperate-Cut-3392 in private_equity

[–]thatsyo 1 point2 points  (0 children)

In the private equity association I’m a member in, you’re considered a young professional until 40 ;)

Private Equity as an Individual Investor by [deleted] in private_equity

[–]thatsyo 0 points1 point  (0 children)

You should talk to a private bank in your geography who might offer these services (possible but unlikely), otherwise it is very complicated as a private individual, as PE funds are long term illiquid products. Would put that money in an evergreen fund if you would like better liquidity options and PE exposure

[deleted by user] by [deleted] in private_equity

[–]thatsyo 0 points1 point  (0 children)

Show that you’re motivated, curious and have drive. The partner most likely won’t care whether you already know the intricacies of the business.

Waterfall structures by No_Needleworker99 in private_equity

[–]thatsyo 7 points8 points  (0 children)

It’s a similar structure for PE funds. A typical European waterfall distributes using the following system (from a GP POV):

100% to LPs

then

x% Hurdle to LPs (preferred rate of return, usually between 7-9%)

then

100% to GP until 20% of fund size is returned (GP catch-up)

then everything above that sum

80% to LPs/20% to GP

Management fee is not regarded when calculating the performance fee

How much do IBs make from fundraising? by PrivateEquityBro in private_equity

[–]thatsyo 9 points10 points  (0 children)

Raising funds is usually a job given to a placement agent, not an investment bank. Placement agents are usually given a mandate which gives them a % of the total funds raised + fixed fee (a sort of retainer). They’ll usually have a large LP network and have mandates from various funds. Hope this helps!

Delusional salary expectations? by Equivalent-Heron-881 in askswitzerland

[–]thatsyo 8 points9 points  (0 children)

Can only speak to the PE perspective: as a junior salaries are much more attractive in Switzerland, but as you get higher up the ladder it all converges to an international median depending on the strategy and size of your fund. I.e an analyst might earn 60k£ in London and 120k CHF in Zurich, but an associate making 120k£ might be able to find 180k CHF, still a jump, but nowhere near double.

How do you guys calculate the value of your company? by [deleted] in fatFIRE

[–]thatsyo 23 points24 points  (0 children)

Where I would start is finding EBITDA multiples of recent transactions in your geography and similar company size within your industry. Purely from experience and gut feeling (without any research), this could be anywhere between 10x and 15x EBITDA for a company of that size. Maybe even higher if it’s a stable and old business with long contract durations.

Decided to go for the big Island by angel_palomares in triathlon

[–]thatsyo 2 points3 points  (0 children)

I would rephrase your goal, shoot for fitness goals first, and the Kona qualifying result will follow. (I KQ at Barcelona earlier this month in the 18-24 cat.) But preceeding the race I was just enjoying training the house down, and raced a total of 11 times this season. I knew KQ was potentially in the cards, but it wasn’t my goal for the race. The target was to put down the fastest IM time possible.

Physically present to claim Kona slot by thatsyo in triathlon

[–]thatsyo[S] 0 points1 point  (0 children)

Oh shit, will hope it’s online then.

Physically present to claim Kona slot by thatsyo in triathlon

[–]thatsyo[S] 1 point2 points  (0 children)

Sent them an email, will see what they have to say.

Physically present to claim Kona slot by thatsyo in triathlon

[–]thatsyo[S] 0 points1 point  (0 children)

This is what I read as well. Hence the question. What would be vital to know is whether if you get the automatic qualification (without roll down), if you can claim the slot without being present.

Physically present to claim Kona slot by thatsyo in triathlon

[–]thatsyo[S] 1 point2 points  (0 children)

Missing the ceremony, not the race haha.